Susan White incurred the following income, disbursements, and losses in 20x8 and 20x9:
Additional information:
20x7 was the first year that Susan sold a capital asset.
Susan incurred a business loss of $5,000 from her proprietorship in 20x7 (the first year of the business) that was not needed to reduce her net income for tax purposes in 20x7.
She has never used her lifetime capital gains deduction.
Required:
Calculate Susan's minimum taxable income for 20x8 and 20x9, in accordance with Section 3 of the Income Tax Act. (Assume 20x7, 20x8, and 20x9 are 2017, 2018, and 2019.)

Question

Susan White incurred the following income, disbursements, and losses in 20x8 and 20x9:
  Additional information:
20x7 was the first year that Susan sold a capital asset.
Susan incurred a business loss of $5,000 from her proprietorship in 20x7 (the first year of the business) that was not needed to reduce her net income for tax purposes in 20x7.
She has never used her lifetime capital gains deduction.
Required:
Calculate Susan's minimum taxable income for 20x8 and 20x9, in accordance with Section 3 of the Income Tax Act. (Assume 20x7, 20x8, and 20x9 are 2017, 2018, and 2019.)

Quizplus · Accepted Answer

The Answer of Susan White incurred the following income, disbursements, and losses in 20x8 and 20x9:
  Additional information:
20x7 was the first year that Susan sold a capital asset.
Susan incurred a business loss of $5,000 from her proprietorship in 20x7 (the first year of the business) that was not needed to reduce her net income for tax purposes in 20x7.
She has never used her lifetime capital gains deduction.
Required:
Calculate Susan's minimum taxable income for 20x8 and 20x9, in accordance with Section 3 of the Income Tax Act. (Assume 20x7, 20x8, and 20x9 are 2017, 2018, and 2019.)

Susan White Incurred the Following Income, Disbursements, and Losses in 20x8